Associated Press

SALT LAKE CITY — While Utah has received high marks over the years for its economic and business-friendly environment, the Beehive State still has room for improvement when it comes to its manufacturing sector.

Utah received grades of C for manufacturing and C-minus for logistics in the 2013 Manufacturing and Logistics Report Card — an analysis from Ball State University’s Center for Business and Economic Research that grades all 50 states on factors that impact success. The report was prepared at the request of Conexus Indiana, the state's advanced manufacturing initiative.

The Center For Business and Economic Research is an economic policy and forecasting research center at Ball State in Muncie, Ind. The center's research includes public finance, regional economics, manufacturing, transportation, and energy sector studies.

The report showed how each state ranks among its peers in several areas of the economy that underlie the success of manufacturing and logistics. The specific measures include manufacturing and logistics industry health, human capital, cost of worker benefits, diversification of the industries, state-level productivity and innovation, expected fiscal liability, tax climate and global reach.

In addition to the previously mentioned C-level grades, Utah also received a C grade for global reach. However, the state received A grades for human capital, worker benefit costs, tax climate and expected liability gap as well as a B grade for sector diversification and a B-plus for productivity and innovation.

“Utah’s great strength in manufacturing lies in its remarkably strong labor force,” said Michael Hicks, an economics professor and the center's director. “With a movement from a B-plus to an A in this year’s scorecard, Utah continues to improve its climate for manufacturing.”

With continued low health care costs due to the healthy lifestyles of residents, the growth of productivity in 2013 and the improvements in expected fiscal gap from a B to an A, Utah should expect an increase in manufacturing production over the next several years, Hicks added.

“All the pieces are in place for manufacturing growth in Utah,” he said.

Geography continues to play a role in the small level of manufacturing in Montana, Idaho, Wyoming, Nevada, Utah, Colorado, Arizona and New Mexico, Hicks explained.

“In the north, low population densities limit the availability of workers, while in the southern states, very low levels of educational attainment disincentivizes firms from expanding,” he said.

Significant energy cost reductions may overcome some of the limits to growth, especially in the northern mountain states, but it will take significant population growth to see real growth in manufacturing in these states, he noted.

“The continued expansion of the nation’s manufacturing sector continues to be one of the bright spots for the recovery,” Hicks said. “Unfortunately, it hasn’t been enough to drag the entire economy into a full-blown recovery.”

Alabama

Manufacturing industry health: B-

Logistics industry health: C

Human capital: F

Worker benefit costs: A

Tax climate: B

Expected liability gap: C

Global reach: B

Sector diversification: B

Productivity and innovation: D

Alaska
Associated Press

Manufacturing industry health: F

Logistics industry health: D

Human capital: C

Worker benefit costs: C-

Tax climate: B+

Expected liability gap: D

Global reach: F

Sector diversification: F

Productivity and innovation: F

Arizona
Associated Press

Manufacturing industry health: C

Logistics industry health: C

Human capital: D

Worker benefit costs: B

Tax climate: B

Expected liability gap: C

Global reach: D-

Sector diversification: F

Productivity and innovation: C

Arkansas
Associated Press

Manufacturing industry health: C

Logistics industry health: C

Human capital: F

Worker benefit costs: A

Tax climate: C-

Expected liability gap: C

Global reach: C

Sector diversification: C+

Productivity and innovation: F

California
Associated Press

Manufacturing industry health: C+

Logistics industry health: B

Human capital: C

Worker benefit costs: F

Tax climate: D

Expected liability gap: D

Global reach: C

Sector diversification: D

Productivity and innovation: A

Colorado
Associated Press

Manufacturing industry health: D+

Logistics industry health: C-

Human capital: B

Worker benefit costs: B

Tax climate: C

Expected liability gap: C-

Global reach: D

Sector diversification: C

Productivity and innovation: B

Connecticut
Associated Press

Manufacturing industry health: B

Logistics industry health: D

Human capital: C

Worker benefit costs: C

Tax climate: D-

Expected liability gap: C-

Global reach: A

Sector diversification: D

Productivity and innovation: C+

Delaware
Associated Press

Manufacturing industry health: D

Logistics industry health: F

Human capital: C-

Worker benefit costs: F

Tax climate: B

Expected liability gap: A

Global reach: B

Sector diversification: C

Productivity and innovation: C

Florida
Associated Press

Manufacturing industry health: D

Logistics industry health: C+

Human capital: C

Worker benefit costs: C+

Tax climate: A

Expected liability gap: B

Global reach: C-

Sector diversification: B+

Productivity and innovation: D+

Georgia
Associated Press

Manufacturing industry health: D+

Logistics industry health: B

Human capital: D

Worker benefit costs: B

Tax climate: C

Expected liability gap: A

Global reach: C+

Sector diversification: A

Productivity and innovation: C

Hawaii
Associated Press

Manufacturing industry health: F

Logistics industry health: F

Human capital: C

Worker benefit costs: C

Tax climate: C

Expected liability gap: F

Global reach: F

Sector diversification: C

Productivity and innovation: F

Idaho
Associated Press

Manufacturing industry health: C

Logistics industry health: D

Human capital: C

Worker benefit costs: C

Tax climate: C+

Expected liability gap: C

Global reach: F

Sector diversification: F

Productivity and innovation: B

Illinois
Associated Press

Manufacturing industry health: C

Logistics industry health: A

Human capital: C

Worker benefit costs: F

Tax climate: F

Expected liability gap: F

Global reach: B

Sector diversification: C

Productivity and innovation: B+

Indiana
Associated Press

Manufacturing industry health: A

Logistics industry health: A

Human capital: D

Worker benefit costs: C-

Tax climate: A

Expected liability gap: C+

Global reach: A

Sector diversification: C

Productivity and innovation: C+

Iowa
Associated Press

Manufacturing industry health: A

Logistics industry health: B

Human capital: A

Worker benefit costs: C

Tax climate: D-

Expected liability gap: C+

Global reach: C-

Sector diversification: C

Productivity and innovation: C

Kansas
Associated Press

Manufacturing industry health: A

Logistics industry health: C

Human capital: C+

Worker benefit costs: B

Tax climate: C

Expected liability gap: C-

Global reach: C

Sector diversification: C-

Productivity and innovation: C

Kentucky
Associated Press

Manufacturing industry health: B

Logistics industry health: B

Human capital: D

Worker benefit costs: C

Tax climate: C

Expected liability gap: F

Global reach: A

Sector diversification: B-

Productivity and innovation: D

Louisiana
Associated Press

Manufacturing industry health: C

Logistics industry health: B+

Human capital: F

Worker benefit costs: B-

Tax climate: C

Expected liability gap: C-

Global reach: B-

Sector diversification: C-

Productivity and innovation: C

Maine
Associated Press

Manufacturing industry health: C

Logistics industry health: D-

Human capital: B-

Worker benefit costs: F

Tax climate: D+

Expected liability gap: D-

Global reach: D

Sector diversification: C

Productivity and innovation: D-

Maryland
Associated Press

Manufacturing industry health: D

Logistics industry health: D

Human capital: C+

Worker benefit costs: C+

Tax climate: D

Expected liability gap: C

Global reach: D

Sector diversification: C-

Productivity and innovation: B

Massachusetts
Associated Press

Manufacturing industry health: C

Logistics industry health: D

Human capital: B-

Worker benefit costs: C

Tax climate: D

Expected liability gap: B

Global reach: C+

Sector diversification: D

Productivity and innovation: A

Michigan
Invision

Manufacturing industry health: A

Logistics industry health: B-

Human capital: C-

Worker benefit costs: C

Tax climate: B-

Expected liability gap: D

Global reach: A

Sector diversification: D-

Productivity and innovation: C

Minnesota
Associated Press

Manufacturing industry health: B

Logistics industry health: B

Human capital: A

Worker benefit costs: C

Tax climate: F

Expected liability gap: B

Global reach: C-

Sector diversification: C

Productivity and innovation: A

Mississippi
Associated Press

Manufacturing industry health: C+

Logistics industry health: C-

Human capital: F

Worker benefit costs: B

Tax climate: B

Expected liability gap: D

Global reach: D

Sector diversification: A

Productivity and innovation: F

Missouri
Associated Press

Manufacturing industry health: C

Logistics industry health: B

Human capital: C

Worker benefit costs: A

Tax climate: A

Expected liability gap: B

Global reach: B-

Sector diversification: A

Productivity and innovation: D

Montana
Associated Press

Manufacturing industry health: D-

Logistics industry health: D+

Human capital: B

Worker benefit costs: D

Tax climate: A

Expected liability gap: F

Global reach: F

Sector diversification: C

Productivity and innovation: F

Nebraska
Associated Press

Manufacturing industry health: C-

Logistics industry health: C+

Human capital: B+

Worker benefit costs: C+

Tax climate: C-

Expected liability gap: B

Global reach: D+

Sector diversification: D

Productivity and innovation: C-

Nevada
Associated Press

Manufacturing industry health: F

Logistics industry health: D

Human capital: D

Worker benefit costs: B

Tax climate: B-

Expected liability gap: C

Global reach: C

Sector diversification: D+

Productivity and innovation: C-

New Hampshire
Associated Press

Manufacturing industry health: B

Logistics industry health: F

Human capital: A

Worker benefit costs: D

Tax climate: C-

Expected liability gap: C

Global reach: C

Sector diversification: D

Productivity and innovation: B-

New Jersey
Associated Press

Manufacturing industry health: C-

Logistics industry health: C+

Human capital: C+

Worker benefit costs: D

Tax climate: F

Expected liability gap: D

Global reach: B

Sector diversification: D-

Productivity and innovation: B-

New Mexico
Associated Press

Manufacturing industry health: F

Logistics industry health: D-

Human capital: D-

Worker benefit costs: C+

Tax climate: C-

Expected liability gap: D+

Global reach: D-

Sector diversification: F

Productivity and innovation: B-

New York
Associated Press

Manufacturing industry health: F

Logistics industry health: C

Human capital: C-

Worker benefit costs: C-

Tax climate: F

Expected liability gap: B+

Global reach: D+

Sector diversification: B-

Productivity and innovation: C+

North Carolina
Associated Press

Manufacturing industry health: C+

Logistics industry health: C

Human capital: C

Worker benefit costs: C

Tax climate: D

Expected liability gap: A

Global reach: C

Sector diversification: B

Productivity and innovation: B

North Dakota
Associated Press

Manufacturing industry health: D-

Logistics industry health: C

Human capital: B+

Worker benefit costs: B+

Tax climate: B

Expected liability gap: C

Global reach: C

Sector diversification: C-

Productivity and innovation: D

Ohio
Associated Press

Manufacturing industry health: A

Logistics industry health: A

Human capital: C-

Worker benefit costs: D

Tax climate: C-

Expected liability gap: C

Global reach: A

Sector diversification: C+

Productivity and innovation: C

Oklahoma
Associated Press

Manufacturing industry health: C-

Logistics industry health: C

Human capital: D+

Worker benefit costs: C

Tax climate: B-

Expected liability gap: D

Global reach: C-

Sector diversification: C

Productivity and innovation: C-

Oregon
Associated Press

Manufacturing industry health: A

Logistics industry health: C

Human capital: C

Worker benefit costs: C-

Tax climate: C+

Expected liability gap: B

Global reach: D

Sector diversification: F

Productivity and innovation: B+

Pennsylvania
Associated Press

Manufacturing industry health: C

Logistics industry health: A

Human capital: C

Worker benefit costs: D+

Tax climate: D

Expected liability gap: C

Global reach: C

Sector diversification: B

Productivity and innovation: C

Rhode Island
Associated Press

Manufacturing industry health: D

Logistics industry health: F

Human capital: C-

Worker benefit costs: C-

Tax climate: F

Expected liability gap: D-

Global reach: D

Sector diversification: B+

Productivity and innovation: D

South Carolina
Associated Press

Manufacturing industry health: A

Logistics industry health: D+

Human capital: D

Worker benefit costs: D

Tax climate: C

Expected liability gap: D+

Global reach: A

Sector diversification: B

Productivity and innovation: C-

South Dakota
Associated Press

Manufacturing industry health: C-

Logistics industry health: C-

Human capital: B

Worker benefit costs: A

Tax climate: B

Expected liability gap: C+

Global reach: F

Sector diversification: C

Productivity and innovation: D-

Tennessee
Associated Press

Manufacturing industry health: B

Logistics industry health: B+

Human capital: D-

Worker benefit costs: B+

Tax climate: C

Expected liability gap: B

Global reach: B

Sector diversification: B

Productivity and innovation: C

Texas
Associated Press

Manufacturing industry health: C

Logistics industry health: A

Human capital: C-

Worker benefit costs: B

Tax climate: C

Expected liability gap: B

Global reach: B+

Sector diversification: C

Productivity and innovation: A

Utah
Ravell Call, Deseret News

Manufacturing industry health: C

Logistics industry health: C-

Human capital: A

Worker benefit costs: A

Tax climate: A

Expected liability gap: A

Global reach: C

Sector diversification: B

Productivity and innovation: B+

Vermont
Associated Press

Manufacturing industry health: B

Logistics industry health: F

Human capital: B

Worker benefit costs: D+

Tax climate: D

Expected liability gap: C

Global reach: C

Sector diversification: D+

Productivity and innovation: C

Virginia
Associated Press

Manufacturing industry health: D

Logistics industry health: C-

Human capital: C

Worker benefit costs: C

Tax climate: C

Expected liability gap: C

Global reach: C

Sector diversification: A

Productivity and innovation: B

Washington
Associated Press

Manufacturing industry health: C

Logistics industry health: C

Human capital: A

Worker benefit costs: F

Tax climate: C

Expected liability gap: B+

Global reach: C+

Sector diversification: A

Productivity and innovation: A

West Virginia
Associated Press

Manufacturing industry health: C

Logistics industry health: C

Human capital: F

Worker benefit costs: D-

Tax climate: C

Expected liability gap: F

Global reach: B

Sector diversification: C-

Productivity and innovation: D

Wisconsin
Associated Press

Manufacturing industry health: A

Logistics industry health: B-

Human capital: B

Worker benefit costs: D-

Tax climate: D+

Expected liability gap: A

Global reach: C

Sector diversification: C+

Productivity and innovation: C

Wyoming
Associated Press

Manufacturing industry health: D

Logistics industry health: C

Human capital: B

Worker benefit costs: D

Tax climate: B+

Expected liability gap: C

Global reach: C-

Sector diversification: D

Productivity and innovation: D